Why TuSimple (TSP) Shares Are Shooting Higher Today

TuSimple Holdings TSP announced a restructuring plan for its U.S. operations and is no longer seeking strategic alternatives for its Asia Pacific subsidiaries.
TSP intends to continue maturing its technology while preserving its balance sheet.
To better align employment levels with the company's objectives, TuSimple seeks to reorganize its U.S. operations by reducing the global workforce by about 30%.
The reduction in workforce will only impact TuSimple locations within the U.S.
The restructuring is expected to lead to ~$12 million to $13 million in one-time charges and result in an expected annual cash compensation expense savings of ~$64 million to $68 million.
"As we relaunch TuSimple, we have taken a variety of factors into consideration including further deterioration of global economic growth, significantly reduced capital availability in the self-driving industry and redundant hardware availability," commented Cheng Lu, president and CEO of TuSimple.
"Given these factors, we believe this restructuring, while difficult, aligns our capital spend with the pace of overall industry readiness and improves our long-term competitive position," added Lu.
TSP is no longer considering a transaction because it thinks that keeping ownership and control of its Asia Pacific businesses is in the best interests of shareholders.
Price Action: TSP shares are trading higher by 17.50% at $1.50 on the last check Thursday.

Why TuSimple Shares Are Shooting Higher Today